ABSTRACT

At the end of each accounting period the total balances of these sub-ledger accounts needs to equal the balance on the ‘accounts receivable’ ledger account. The name of the accounts receivable sub-ledger is the same as the name of the debtor. There are no debit and credit sides, but the columns ‘debit ‘ and ‘credit’ have the same function. An advantage is that the balance of the receivable from each debtor can be seen directly after making the entry. The sub-ledger accounts do not need to be closed separately. Sometimes the ‘balance’ column is missing; the balance will then be calculated by closing the accounts at the end of the accounting period, in the same way as closing the cash book. This chapter provides examples that shows how the entries are made. It includes multiple exercises that help students try themselves and prepare the sub-ledger accounts for a set of financial scenarios.